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Hi everyone, looking for some information.
I have shares of netflix, and it has recently been going down. Which I'm not concerned about, I have still made a generous profit from it, but I was looking at the options, and it seems I could potentially be earning money depending on what price I would be writing my calls at. I have never written calls before, and I do understand how they work, except for one part...
If I execute and order to write a covered call on one of my stocks, does the transaction automatically go though? Or does it sit in suspense until someone buys it? Whenever I buy a stock i usually do market purchases, so it usually goes sometime at the end of the day. I just wanted to make sure, if I am writing a covered call, when I will get the initial premium.
I am not afraid to cap my gains if it goes up, because I think just getting the bump in price and premium is well worth it. I just really want to know when I click the button to write the call, that I'll be getting my premium then , and it won't be lingering as a possibility for a few days, or even weeks.
Thanks for reading.
I have shares of netflix, and it has recently been going down. Which I'm not concerned about, I have still made a generous profit from it, but I was looking at the options, and it seems I could potentially be earning money depending on what price I would be writing my calls at. I have never written calls before, and I do understand how they work, except for one part...
If I execute and order to write a covered call on one of my stocks, does the transaction automatically go though? Or does it sit in suspense until someone buys it? Whenever I buy a stock i usually do market purchases, so it usually goes sometime at the end of the day. I just wanted to make sure, if I am writing a covered call, when I will get the initial premium.
I am not afraid to cap my gains if it goes up, because I think just getting the bump in price and premium is well worth it. I just really want to know when I click the button to write the call, that I'll be getting my premium then , and it won't be lingering as a possibility for a few days, or even weeks.
Thanks for reading.